Stock indexes rise as US and China agree to trade talks, but negative earnings impact gains.

From Nasdaq: 2025-05-07 15:32:00

Stock indexes are up today, with the S&P 500, Dow Jones, and Nasdaq all showing gains. E-mini S&P and Nasdaq futures are also up. Trade tensions between the US and China are easing as representatives meet for talks. Negative corporate earnings results are limiting stock gains.

US MBA mortgage applications rose by 11.0% last week, with both purchase and refinancing sub-indexes up. The average 30-year fixed rate mortgage fell to 4.84%. The People’s Bank of China enacted easing measures to boost liquidity. The FOMC is expected to keep rates unchanged, with reduced expectations for a rate cut this week.

Focus this week is on tariffs and US trade policy changes. Overseas markets are mixed, with Euro Stoxx 50 down and China’s Shanghai Composite up. Interest rates are slightly down. European government bond yields are lower. Swaps predict a rate cut by the ECB. US stock movers include Charles River Labs, Oscar Health, and Rockwell Automation.

Earnings season continues, with S&P 500 companies expected to have a 6.7% year-over-year earnings growth. Overseas, Eurozone retail sales fell, while German factory orders rose. Swaps predict a rate cut by the ECB in June. US stock movers include Verisk Analytics, AMD, and Electronic Arts. Marvell Technology and Sarepta Therapeutics are down due to guidance cuts. CrowdStrike Holdings plans workforce cuts. Earnings reports for May 7 include companies like Walt Disney and Uber Technologies.



Read more at Nasdaq: Stocks Boosted as US and China Agree to Begin Trade Talks